The New Zealand Labour Party has promised to pay all Public Service contractors at least the living wage if it wins the General Election next month.
Currently set at $NZ22.10 ($A20.32), per hour, the living wage is the amount needed to “pay for the necessities of life and participate as an active citizen in the community”.
It is significantly above the present minimum wage of $18.90 ($A17.38).
In 2018 the Labour-led Government made the living wage, updated annually, the minimum it pays anyone employed by the core Public Service.
The party’s Spokesperson on Workplace Relations, Andrew Little said it was time to expand that to contractors.
“As we recover and rebuild from the impacts of COVID-19, Labour is committed to help working New Zealanders by raising wages, protecting them while they are at work, growing jobs and investing in the economy,” Mr Little said.
Mr Little said Labour’s plan would boost pay for contractors presently on the minimum wage by nearly $NZ100 ($A92) a week.
He was supported by Spokesperson on Economic Development, Phil Twyford who said paying contracted workers a living wage would be a great boost to contractors’ household incomes and improve life for them and their families.
“This money will be spent back in the community, meaning it will benefit the wider economy at the same time,” Mr Twyford said.
“Paying the living wage to contracted workers is a win for everyone,” he said.
Mr Little said about 70 per cent of those who benefited from the 2018 adoption amongst the core Public Servants were women.
“The policy will be rolled out as existing contracts end, and cost about $NZ18 million ($A16.6 million) a year,” he said.
The living wage is calculated each year by the New Zealand Family Centre Social Policy Unit.
It typically runs a few dollars above the minimum wage, which is expected to rise to $NZ20 ($A18.40) next year if Labour is re-elected.
The Opposition Nationals said it might cancel the planned increase, the Māori Party wants to raise it to $NZ25 ($A23) per hour.
Wellington, 14 September 2020
